Ireland Delays Second-Tier Child Benefit Scheme for Budget 2026

The Irish Government will not introduce a second-tier child benefit scheme in the upcoming Budget 2026, Minister for Social Protection Dara Calleary confirmed. The announcement comes as a disappointment for many families, particularly following recent reports highlighting increasing child poverty rates. The budget is set to be presented on October 7, 2025.

During an appearance on RTÉ Radio’s This Week programme, Calleary stated that while his department has explored the details of a potential second-tier scheme, it will not be finalized in time for this year’s budget. He expressed optimism about introducing such a scheme by this time next year.

A report by the Children’s Rights Alliance released in June indicated a troubling trend, revealing that the number of children living in consistent poverty had risen by 45,000 within a year, totaling 103,000. Additionally, a study from the Economic and Social Research Institute suggested that a second-tier child benefit costing approximately €772 million annually could potentially lift 55,000 children out of income poverty and 25,000 out of consistent poverty.

In response to the Children’s Rights Alliance findings, Taoiseach Micheál Martin hinted that a second-tier allowance was under consideration for Budget 2026. He emphasized the need to address the increase in poverty levels, directing ministerial colleagues to devise measures that effectively support the most vulnerable families.

On Sunday, Minister Calleary reiterated the existing supports available to families, including the child support payment, which is an additional benefit for those on low incomes. The government invests €780 million annually in this payment, assisting around 329,000 children. Calleary noted that any proposals for a second-tier child benefit would necessitate a comprehensive reevaluation of existing payments to ensure that no families would lose support in the transition.

“We must ensure that nobody loses out by introducing a new payment,” Calleary stated. He also highlighted the importance of determining appropriate cut-off points for the new tiers to prevent current beneficiaries of the working family payment from being adversely affected.

Despite the setback for Budget 2026, Calleary reassured that work on the second-tier child benefit will continue, with a goal to present a proposal to the Government before Budget 2027.

In the meantime, the Government has allocated €320 million this year for hot school meals in primary schools, ensuring that by the end of the calendar year, every primary school will provide access to these meals. Calleary described these initiatives as essential “non-income supports” that the Government is actively expanding to assist families across the board.